REPORT DIGEST

GENERAL ASSEMBLY RETIREMENT SYSTEM

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2020

Release Date:  May 19, 2021

FINDINGS THIS AUDIT:  2

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  1 -- 1 -- 2
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 1 -- 2

FINDINGS LAST AUDIT: 2

Category 1: Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State
laws and regulations (material
noncompliance).
Category 2: Findings that are significant
deficiencies in internal control and
noncompliance with State laws and
regulations.
Category 3: Findings that have no
internal control issues but are in
noncompliance with State laws and
regulations.

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, AUDITOR GENERAL

To obtain a copy of the Report contact:
Office of the Auditor General, Iles Park
Plaza, 740 E. Ash Street, Springfield, IL
62703
(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are
also available on the worldwide web at
www.auditor.illinois.gov

INTRODUCTION

This digest covers our Compliance
Examination of the General Assembly
Retirement System for the year ended June
30, 2020.  A separate Financial Audit as
of and for the year ending June 30, 2020,
was previously released on January 27,
2021.   This report contains two
findings, neither of which were reported
in the financial audit.

SYNOPSIS

• (20-1) The General Assembly Retirement
System of the State of Illinois continues
to not comply with the ethics training
provisions of the Illinois Pension Code.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

NONCOMPLIANCE WITH ETHICS TRAINING
REQUIREMENTS

The General Assembly Retirement System of
the State of Illinois (System) continues
to not comply with the ethics training
provisions of the Illinois Pension Code.

During the current year examination
testing, we determined through our
compliance testing the System did not
track the ethics training completed by
its Board members and did not submit the
required annual certification of
compliance certifying ethics training was
completed by its Board members with the
Illinois Department of Financial and
Professional Regulation, Division of
Insurance (DFPR).  (Finding 1, page 10)
This finding has been repeated since
2015.

We recommended the System provide
opportunity for the Board members to
participate in 8 hours of ethics training
in order to internally process and track
each Board member’s ethics training
requirements and submit the required
annual certification to DFPR or seek
legislative remedy from the statutory
requirement.

The System agreed with our recommendation
and indicated they would work to obtain a
training certification from the GARS
Trustees.

OTHER FINDINGS

The remaining finding pertains to the
General Assembly Retirement System
(System) having a vacancy in one of the
seven required trustees of the Board for
more than one year.  We will review the
System’s progress towards the
implementation of our recommendations in
our next compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the General Assembly
Retirement System for the year ended June
30, 2020, as required by the Illinois
State Auditing Act.  The accountants
stated the General Assembly Retirement
System complied, in all material
respects, with the requirements described
in the report.

This compliance examination was conducted
by RSM US LLP.

JANE CLARK
Division Director

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

FRANK J. MAUTINO
Auditor General

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